institutions, especially smaller community banks, that would like to grow their lending network within – or beyond – their geographic market and enable opportunities across one or more banks. Perhaps you’ve merged with another institution and need to minimize risk from existing credits you inherited. Maybe you have a strong borrower and want to keep doing business with them despite reaching your lending limit. In either case, you can post the loan and decide whether to retain the servicing rights. Banks commonly struggle with a high concentration of certain asset categories that need to be offloaded. But you don’t have to rely on your immediate network. For example, a rural community bank with mostly Ag loans can easily connect with a metropolitan bank with a portfolio consisting of commercial real estate loans. In so doing, you can also make your institution less vulnerable to local economic slowdowns or sudden declines in loans of certain types. Using Marketplace Lending to Streamline Procedures This new technology simplifies the process of growing assets or disposing of them when lending limits or risk concentration becomes too high. Much like digital loan origination software, a modern loan marketplace decreases internal resource demands and enables you to manage the transaction process through a single point rather than across multiple parties. You can also monitor your bank’s performance against peers using interactive visualizations of current call report information for all FDIC-regulated institutions. These analytics offer performance metrics, allocation, competitive analyses and actionable insight. Between more efficient procedures and market intelligence concerning how peers are transacting, this environment reduces the complexity of lending and deal origination. Looking Ahead for the Lending Market Consider a loan marketplace as you keep an eye on the developing landscape. It’s a new take on a traditional process, but with no fee to participate, there are virtually no downsides. Meanwhile, your institution stands to achieve higher returns, expand your loan access and easily diversify your loan portfolio. Continued from page 27 Consider a loan marketplace as you keep an eye on the developing landscape. It’s a new take on a traditional process, but with no fee to participate, there are virtually no downsides. Simon Fisher joined CSI in August 2020 to expand CSI’s digital lending strategy. Prior to joining CSI, Simon worked as a consultant helping banks around the U.S. conduct core evaluations. Simon has a fundamental understanding of industry trends by evaluating multiple platforms. During his career, he has worked in many different lending roles for a community bank for his 10-year term, including retail, commercial and mortgage loans. Simon understands the complexity of different loan types and is working to deliver the best digital experience for loan officers as well as borrowers. Learn more about how the right enterprise core powers advancements like digital lending services in our Definitive Guide to a Modern Core Banking Partnership. www.coloradobankers.org 28
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